Financing a Home: It Ain’t Easy Anymore

Financing a Home: It Ain’t Easy Anymore

I don’t think that there’s a person in America that didn’t expected that lenders were going to be stricter than ever after the collapse of the real estate market. I certainly expected that my first home purchase after the fall of the sub-prime lending industry wouldn’t be pleasant to say the least. I expected the home buyer’s version of the Spanish Inquisition as the equivalent process of what I’d have to endure to get a loan approved, so I was basically ready for anything. Here’s what I went through.

Preparation

Prior to the collapse of the real estate market, I had no reservations about going to a bank to borrow money. After all, I had done it a few times and had sufficient collateral to insure that not only would I get approved, but I get a favorable rate and terms. Going into this purchase, I wasn’t so sure. I started by doing the first thing that any home buyer should do, I pulled all three versions of my credit to insure that there were no surprises and in fact there was. I made sure that I had sufficient documentation to justify the blemish on my report in the form documentation from the creditor. I made sure that there wasn’t a simple piece of documentation that I wasn’t missing and felt that this was the most prepared that I had ever been going into a home purchase.

The Process

After going through all the documentation and preparation I found that I would still be in awe of the new process for loan approval. The first shock in the process was when I found that there were more mortgage fees than before. The fees came to the tune of a couple thousand dollars. The second shock was lot bigger and hit like a ton of bricks. Even though I had a great credit score and the only blemish on my credit was easily explainable, each of the three potential lenders wanted a very large down payment. Being an investor, I had heard the 10% line before, but now I was hearing a consistent 15% – 20%. Having a great credit rating, I was in absolute shock. The third thing I was not prepared for was the credit and financial scrutiny. I provided far more documentation than was ever requested before and each item was examined with forensic accuracy.

Conclusion

After weeks of examinations into my financial background that were so thorough that I’m certain that the financial misfortunes of my ancestors were revealed, I was finally approved. After going through the process I can give this advice to potential home buyers. Make sure that your credit is in tip top shape. If it isn’t wait a while and clean it up. Good deals will still be out there. Most importantly, you’ll need to make sure that you have a large down payment. You may also seek financial assistance from reliable loan agencies like Majestic Lake Financial. Unlike banks, they give their loan applicants higher chance of getting approved so they can finally pursue their dream of having their own house. Get to know more at Majestic Lake Financial.

Janice
Janice Reyes is a hardworking content writer who loves to experiment with the new gadgets and beauty products that are there in the market. This way she is capable of distinguishing what is best for her readers.

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